Ann: Proposed Sale of Western Tanami Project, page-6

Pbnewby

One needs to get a better handle on how the 40/60 deal would stack up in respect of ore sourced from tenements not forming part of the 40/60 deal versus, ie wholly owned by NST. If they were to only process ore from NST owned tenements then what would be the share of profits to TAM? I think there would be some profits for TAM as a result of their 40% ownership of the plant, but that it would be a lot less than 40%.

Another issue is possible plant optimisation to suit NST's view of the economics of the project. I can not recall what cost capital sharing there would be if NST wants to operate a plant from the getgo that has a higher capacity than available from just refurbishing the existing plant.

loki